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Chinese investors withdraw Mexico resort plan

May 30, 2014

MEXICO CITY (AP) — The developers behind a plan to build a huge resort near a protected coral reef in northern Mexico said Friday they have withdrawn their proposal, but plan to resubmit it with changes.

The announcement marks another chapter in the yearslong fight around the site near the Cabo Pulmo reef on the southern tip of the Baja California peninsula.

The developers said in a statement that they were withdrawing an environmental impact statement “in view of the important concerns that the project has raised.”

The developers, “Glorious Earth Group” and “Beijing Sansong International Trade Group,” are based in China and the United States, but the main investors appear to be Chinese.

They said they planned “to reinitiate the procedure with a new project ... that takes into account in a detailed way the legitimate criticisms.”

Authorities rejected a similar plan in 2012.

Environmentalists said plans for a 22,000-room resort called “Cabo Dorado” threatened the Cabo Pulmo reserve, the only coral reef of its type in the Gulf of California. Once overfished, marine species in the reef have rebounded spectacularly and Cabo Pulmo is considered a model for environmental recovery.

But activists are tired of fighting recurrent plans to develop the area.

“Definitive measures have to be considered, such as designating the on-shore area as a buffer zone for the Cabo Pulmo marine park,” said Omar Vidal, of the World Wildlife Fund.

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